SBS Business Reportfor the Year Ended December 31, 2021
January 1, 2021 to December 31, 2021

Message from the President

Consolidated Business Results
Special Feature 1
Special Feature 2

ESG at the SBS GroupNews

Corporate Profile and Stock Information

Message from the President

With M&A activities,
the subsequent PMI process as well asorganic growth, we achieved record
net sales and operating income
for the fourth straight year.
Masahiko Kamata, President and Representative Director
Business Results for the Fiscal Year
Under Review（Year Ended December 31, 2021）
a unique business model of in-house logistics facility development
and securitization, we transferred trust beneficiary rights for theNanko Logistics Center（Osaka Prefecture）and achieved thecompleted construction and launch of operations at theYokohama Kanazawa Logistics Center（Kanagawa Prefecture）,
which uses state-of-the-art logistics technologies.
As a result, in the fiscal year under review the SBS Group
recorded net sales of 403.485 billion yen, a 56.9% increase of
146.293 billion yen year on year, and operating income of
20.706 billion yen, an 88.9% increase of 9.745 billion yen year
on year. In doing so, we posted record figures for both net sales
and operating income for the fourth straight year.
Ordinary income also rose 9.605 billion yen（+88.3%）year on year
to 20.489 billion yen, while net income attributable to owners ofparent increased 3.963 billion yen（ +58.1%）year on year to10.790 billion yen.
For the fiscal year ending December 31, 2022, we plan toachieve 430.0 billion yen in net sales, 21.5 billion yen in
operating income, 20.6 billion yen in ordinary income and 11.7
billion yen in net income attributable to owners of parent,
representing increases in both net sales and income. The SBSGroup will make a concerted effort to meet these goals.
I wish to thank all shareholders for their continued support going
forward.

In the fiscal year under review, the COVID-19 pandemic thatbegan in the previous year continued to spread, and theassociated state of emergency declarations issued throughout thecountry had a significant impact on economic activity. However,
e-commerce-related markets including those for daily necessities
and online shopping have continued to expand, and the SBS Group
has strived to actively respond to meet this demand while giving toppriority to preventing infections and ensuring the safety ofcustomers, partners and employees.
In M&A activities, a pillar of the SBS Group's growth strategy, anumber of companies have joined the SBS Group since the additionof SBS Toshiba Logistics in November 2020, including Toyo
Warehouse & Transportation, K.U.K. LINE, Hinomaru Kyuso, Jass,and SBS Furukawa Logistics. By leveraging the strengths of these
individual companies, we have created a structure that provides
even more solid support to the logistics supply chains of ourcustomers.
In addition in our existing logistics operations, we have seen astrong performance throughout the year, with expanded businesswith existing customers, capturing demand from new customers, therecovery of overseas and other intercompany logistics that were hit
hard by the spread of COVID-19, the capturing of e-commerce
demand in the same-day delivery business, and catering to demandfor daily necessities and online supermarket usage. Furthermore
in the real estate business where the SBS Group implements

Consolidated Business Results for the Fiscal Year Under Review■Net Sales/
Operating Income（Right Axis）
Net sales

Operating income（Million yen）■

Ordinary Income/Net Income
Attributable to Owners of Parent
Ordinary income

Net income attributable toowners of parent

20,489（Million yen） （Million yen）

403,485

400,000

40,00020,000■Net Interest-Bearing Debt/Shareholders' Equity/
Net DE Ratio（Right Axis）
Net interest-bearing debt

Shareholders' equity（Million yen）

30,000255,548 257,192
200,000

60,00015,00020,706

203,516

20,00010,172

10,00010,883

10,7907,607
100,000

8,240
0

2018

10,00010,176 10,960

2019

2020

6,079 6,8265,000

40,00020,00056,528

00

2018

2019

2020

2021

0

53,98739,322

1.44

4,409

2021

Net Assets / Shareholders
Equity Ratio（Right Axis）
Net assets

Shareholders equity ratio

80,707 （％）（Times） （Million yen）

80,00070,059300,000

Net DE ratio■201844,5271.21

201970,80959,6933.0

80,0002.5

60,00050,293

1.39

2020

60

68,14648,173

1.19

2021

2.0

40,0001.5

20,000

1.00＊Net interest-bearing debt = long-term debt & short-term debt
+ corporate bonds - cash and deposits＊Net DE ratio = net interest-bearing debt / shareholders' equity

4554,077

30

23.1

2018

25.1

2019

19.9

21.9

2020

2021

150

Special Feature

1

Achieving net sales of over 400 billion yen with SBS Toshiba
Logistics contributing throughout the year.
Aspiring to further heights with a successful M&A strategy
The purpose of stock transfers is the growthof logistics subsidiaries
Companies such as manufacturers and retailers are looking to enjoy advanced
logistics functions by transferring shares in their logistics subsidiaries to dedicatedlogistics operators and improving their corporate value, and these moves are gainingspeed.
Against the backdrop of this management environment, since 2004 the SBSGroup has been honing the unique strengths of individual companies and building
upon business results through M&A activities involving more than 20 companies,
including Yukijirushi Butsuryu（now SBS Flec）and Tokyu Logistics（now SBSLogicom）.
This growth has continued with recent additions to the Group including RicohLogistics（now SBS Ricoh Logistics）in 2018, Toshiba Logistics（now SBS Toshiba
Logistics）in 2020, and Toyo Warehouse & Transportation as well as Furukawa
Logistics（now SBS Furukawa Logistics）in 2021.

（From left）President Morita of Furukawa Logistics（now SBS Furukawa Logistics）, Group representative Kamata,and President Kobayashi of Furukawa Electrice success of M&A
Key factor behind thintegration processactivities: the systemique PMI keyword:
The SBS Group's un"integration"

Post-merger integration, or PMI（the integration process following
the realization of an M&A action）, largely involves two processes.
The first process is the integration of systems, while thesecond is the achievement of business synergy through theintegration of operations with a focus on operations in the field.
During the initial stages, the most important thing is theintegration of systems. Integration of SBS Ricoh Logistics wascompleted over an integration period of roughly two years.
At present, these processes are underway with companies
that recently joined the SBS Group, such as SBS Toshiba
Logistics. When this process is complete, collaboration on theoperational side is expected to pick up speed very quickly.
Expertise in system integration and the financial resources
required to achieve it is an essential key factor to the successof M&A activities.
Through an IT team that possesses expert skills accumulated
from extensive experience, the SBS Group has developed astructure that is able to see this process through.

The keyword for successful M&A activities at the SBSGroup is "integration."
By consolidating head office functions while preserving thetop management, organizational structure and personnelallocations, we improve the quality and speed of information
sharing between Group companies.
In March this year, the head office functions of 19 companies
in total, including companies such as SBS Toshiba Logistics
that joined the SBS Group in recent years, were relocated toand consolidated in Nishi-Shinjuku.
A fundamental idea at the SBS Group is that companies
that join the Group are our colleagues and kindred spirits, andthis is a part of our organizational culture that has ensured
the success of our M&A endeavors.
The dynamics of the values that emerge from the diverse
range of human resources we have accumulated through M&Aand mid-career hiring represent a strength of the SBS Group.

New business ﬁelds, customers and expanded management resources gained through M&A activities
Company nameDate of theM&A actionSBS Ricoh
Logistics

Aug. 2018

SBS Toshiba
Logistics

Nov. 2020

SBS Furukawa
Logistics

Dec. 2021

Toyo Warehouse &Transportation

Jan. 2021

K.U.K. LINE

Apr. 2021

Hinomaru Kyuso

Apr. 2021

JassJul. 2021

New business ﬁelds andcustomers gained

Expanded business with
the Toshiba Group
Expanded business with
the Furukawa Electric GroupStrengths in customs clearance
and international logistics

Compatibility withexisting businesse

Enhanced management andoperational resources

Improved eﬃciency throughmechanization and automation
Sharing of 4PL functions

Strengthening of nationwide delivery
network, etc.
Strengthening of overseas logistics
markets in North America and Europe
Telecommunications, expertise intransportation of motor vehicles, etc.
Location potential in Tokyo
waterfront area
Strengthening of west Japan logistics
supply chain
Delivery network throughout Shikoku

Small lot joint deliveries, furnituredeliveries, etc.
Food logistics at the threetemperature zones
Small lot deliveries in the Tohoku region, Building a trunk line network between
deliveries for mass merchandisers
the Tohoku and Kanto districts

Special Feature

2

Aiming to create an e-commerce
logistics services that track closelywith customer growth
Full-scale entry into the e-commerce logistics business from 2022
From 2022, the SBS Group will make a full-scale entry into the electronic commerce (e-commerce, EC）logistics business.
In addition to the last mile network we are currently developing, by expanding 3PL functions aimed at EC business operators thatcombine the system development, in-the-field expertise and logistics facility development capabilities of our Group companies, wehave set the goal of expanding to become a group with net sales of 100 billion yen by the year 2030.

rvices includingof dedicated ECNew establishment
tropolitan area
sites in the Tokyo me

Fully integrated sethe last mile

In 2019, the B-to-C e-commerce market in Japan was worth 19.4
trillion yen, but this is expected to grow to 29.4 trillion yen by2026, and logistics facilities are being constructed one after
another in major metropolitan areas.
The SBS Group is also actively working to expand its logistics
facilities to meet 3PL demand for the EC business operators thatare growing year after year.
We have laid out plans to establish around 15 new dedicated EC
logistics sites in the Tokyo metropolitan area by 2030, and expect
to invest over 100 billion yen in total for this endeavor.

ote IT adoption andContinuing to prom
eslogistics technologi
the introduction ofbots
such as logistics ro
2021 marked the year in which the SBS Group began the
full-scale introduction of logistics technologies (LT) and IT in thelogistics field.
At the Yokohama Kanazawa Logistics Center that enteredoperation in October, state-of-the-art systems have been installed,
including one of Asia's largest "auto stores" and inspection-lesssystems that utilize machine learning, and we are aiming to realize
dramatic improvements in processing capacity compared withconventional sites.

So that our services can be used at low cost by startups withannual turnover between 500 million and one billion yen ande-commerce business operators in a growth phase in addition to themajor e-commerce business operators with whom we already dobusiness, we will develop fully integrated services that go from
fulfillment to last mile delivery.
We aim to provide services that track closely with the growthof customers, so that our services can easily be used by small-scalee-commerce providers that carry a small number of products.

rced platform for e-comme
Developing a dedicatee
y size or business typlogistics supporting ane
developed in-houswith dedicated facilities
By combining the system development capabilities of SBS
Ricoh Logistics, extensive expertise developed through the 3PL
business for office supply mail order operators, along with thetechnologies to introduce the latest logistics robots of SBS
Toshiba Logistics and the strengths of SBS Logicom in the field,
we will build a dedicated platform for e-commerce logistics.
By 2030, we will generate e-commerce-related sales of 100
billion yen through this platform, developing it into a major pillar of
the logistics business.

Change in logistics facility demand and supply,
and the size of the e-commerce market
DemandNew supply

Size of the e-commerce market (right axis)(trillion yen)(thousand m2)
3,000

20

2,500

15

2,000
10

1,500
1,000

5500
0

FY2016FY2017 FY2018 FY2019 FY2020

0＊The e-commerce market is a B-to-C market＊Source: partial extract from FY2020 research materials from JLL andthe Ministry of Economy, Trade and Industry

Automated form feeder

ESG at the SBS Group
Adoption of Electric Trucks in Last Mile Logistics in Japan First
Aiming to shift to 10,000 electric vehicles by 2030
In October 2021, the SBS Group announced its plans to shift to electric trucks for all of its vehicles handling last miletransportation.
Over the next five years, the SBS Group will shift roughly 2,000 of the vehicles it operates for last mile transportation to electric,
and is encouraging a complete switch to electric vehicles for 10,000 trucks that include affiliate companies by FY2030.

Responding to stronger targets to reduce vehicle CO2 emissions
The SBS Group has declared stronger reductions to vehicle CO 2 emissions as a priority challenge, and has set the goal of
reducing its greenhouse gas emissions by at least 3% year on year annually until 2030.
To meet this goal, we aim to replace our current fleet of vehicles with next-generation vehicles including electric vehicles, andby beginning this full-scale introduction of electric trucks, we expect the promotion of those measures to accelerate even more.

Promoting the introduction of electric vehicles and eco driving (fuel-efficient driving)
The electric trucks that are being adopted this time have been undergoing driving tests since 2021, and will be gradually put
into service once maintenance and upkeep systems have been put in place.
Although there are currently few choices of electric vehicle in Japan to meet the diverse needs of the logistics industry, webelieve that this initiative will represent an important step towards the realization of a decarbonized society in Japan.
The SBS Group recognizes the risks caused by climate change as a critical management issue and the Group is united instriving to implement a decarbonized society while introducing electric vehicles and promoting eco-driving（fuel-efficient driving）.

One-ton electric truck not yet offered by Japanese manufacturers
Japanese manufacturers have yet to make a one-ton electric truck. The electric truck to be introduced is a vehicle with its
design altered by folofly Inc. to meet Japanese safety standards. It is then built and supplied by a Chinese manufacturer on
an OEM basis.
A one-ton electric truck is the most optimal vehicle type for last mile delivery
handled by the SBS Group. It is equipped with a battery with a cruising distanceof 300 km and is an electric vehicle with the largest capacity that can be driven
with a class 1 driver's license.
Receiving electric vehicles supplied by folofly Inc. is a big step for the SBSGroup in its decarbonization efforts and contributions to the global environment.
The SBS Group is seeking to swiftly adopt next-generation vehicles while
financing folofly Inc. to support its future growth.

NewsM &A Toyo Warehouse & Transportationand Furukawa Logistics join theSBS Group（SBS Group）▶▶▶ See Special Feature 1

M &A Acceleration of small M&A
activities by Group companies（SBS Group）▶▶▶ See Special Feature 1

Introduction of automation systems
using logistics technology（LT）（SBS Toshiba Logistics / SBS Ricoh Logistics）▶▶▶ See Special Feature 2

Rapidly progressing into a group that involves active womenparticipation（SBS Holdings / SBS Flecnet）

In August, SBS Holdings was awarded Eruboshi certification by theMinister of Health, Labour and Welfare based on the Act on the Promotionof Female Participation and Career Advancement in the Workplace.
In addition, at the national truck driver contest held in October, a female
driver from SBS Flecnet placed 5th for the first time, drawing attention tothe active participation of women.

Strengthening environmental conservation eﬀorts（SBS Group）

The Kansai Branch of SBS Toshiba Logistics received a 2021 Osaka City Environmental
Bureau Director's Award in recognition of its waste reduction activities.
SBS Ricoh Logistics is pursuing environmental conservation efforts including theimplementation of corporate forest activities as a forest volunteer.
＊Please refer to the section on ESG at the SBS Group for information about the full-scale
introduction of electric trucks.

Corporate Profile and Stock Information■ Corporate Profile■ Stock Information

Company NameSBS Holdings, Inc.

Representative Director

Masahiko Kamata

Established

December 16, 1987

Capital3.92 billion yen

Net sales

403.4 billion yen（consolidated）＊For the year ended December 31, 2021

Location

8-17-1, Nishi-Shinjuku, Shinjuku-ku, Tokyo, 160-6125, Japan
Sumitomo Fudosan Shinjuku Grand Tower 25F
Tel: 03-6772-8200 (main switchboard)

Business Activities

Logistics business, property management business,marketing business, human resources business, etc.

Consolidated
Subsidiaries（January 1, 2022）

Number of Shares Authorized

154,705,200 shares

Number of Shares Issued

39,718,200 shares

SBS Ricoh Logistics System Co., Ltd.
SBS San-Ai Logistics Co., Ltd.
Ricoh Logistics Corporation
Ricoh International Logistics (H.K) Ltd.
Ricoh International Freight Forwarding (Shenzhen) Co., Ltd.
Jass Co., Ltd.

SBS Logicom Co., Ltd.
SBS Freight Service Co., Ltd.
SBS Global Network Co., Ltd.
SBS Logicom Kanto Co., Ltd.
Kyokushin Unyu Kaihatsu (K.U.K. LINE)

SBS Flec Co., Ltd.
SBS Flecnet Co., Ltd.
Hinomaru Kyuso K.K.

5,103

Number of shareholders■ Major Shareholders
Shareholder Name

Number ofShares Held

ShareholdingRatio（%）

Masahiko Kamata

14,388,400

36.22

Custody Bank of Japan, Ltd. (trust account)

5,156,200

12.98

The Master Trust Bank of Japan, Ltd. (trust account)

SBS Toshiba Logistics Corporation
TL Logi Service Co., Ltd.
Toshiba Logistics (Shanghai) Co., Ltd.
Toshiba Logistics (Hangzhou) Co., Ltd.
Toshiba Logistics (Dalian) Co., Ltd.
Toshiba Logistics (Hong Kong) Co., Ltd.
Toshiba Logistics (Thailand) Co., Ltd.
Toshiba Logistics Vietnam Co., Ltd.
Toshiba Logistics America, Inc.
Toshiba Logistics Europe GmbHYes（100 shares）

Unit Stock System

1,575,700

3.96

SBS Holdings Employee Share Ownership Association 1,354,100

3.40

Sumitomo Mitsui Trust Bank, Limited (trust account Ko-18)

1,200,000

3.02

Sumitomo Mitsui Trust Bank, Limited (trust account Ko-13)

1,000,000

2.51

TOBU Properties Co., Ltd.

986,000

2.48

Masaru Wasami

800,000

2.01

Junichi Ouchi

576,700

1.45

SMBC Nikko Securities Inc.

449,800

1.13＊The ratio of shares held against the number of shares issued is truncatedafter the second decimal place.

■ Distribution of Shares by Shareholder Type（number of share issued：39,718,200 shares）

SBS Sokuhai Support Co., Ltd.
SBS Zentsu Co., Ltd.
SBS Furukawa Logistics Corp.
SBS Staff Co., Ltd.
SBS Finance Co., Ltd.
Toyo Warehouse & Transportation Co., Ltd.
Marketing Partner, Inc.
SBS Asset Management Co., Ltd.
LMAX Co., Ltd.

■ Directors （as of March 25, 2022）
Representative Director

Masahiko Kamata

Director

Kenichi Iriyama

Director

Masato Taiji

Director

Yasuhito Tanaka

Director

Katsuhisa Wakamatsu

Director

Hajime Kato

Director
Outside Director

Hiroaki Sato

Outside Director

Jiro Iwasaki

Outside Director

Shuichi Hoshi

Tetsuya Sekimoto

Director（Audit & Supervisory Committee Member）

Takashi Endo
Outside Director（Audit & Supervisory Committee Member）
Masato Matsumoto
Outside Director（Audit & Supervisory Committee Member）
Sachie Tsuji

Japanese corporations

Securities firms

3,000,500 shares（7.55％）

797,829 shares（2.01％）

Treasury stock

Non-Japanese corporations

690 shares（0.00％）

3,777,197 shares（9.51％）

Individuals
and others

Financial institutions

21,259,384 shares（53.53％）

10,882,600 shares（27.39％）■ Changes in Dividends
（Yen）
60

55.05040

30.0302035.0

22.0

100

2018

2019

2020

2021